Market expects more LME aluminium cancelations after 130,000t canceled in Port Klang

Over 130,000 tonnes of aluminium has been canceled at London Metal Exchange warehouses over the past two days with market participants expecting further cancelations by the end of the week.

A total of 94,300 tonnes was canceled on Wednesday January 23 on top of 37,500 tonnes on Tuesday - all of which was in Port Klang, Malaysia.
“I wouldn’t be surprised to see another 100,000 tonnes canceled by the end of the week – and that will significantly tighten the market,” a market source said.
“This isn’t the end of the cancelations – we will for sure see more over the next few days and people will be holding back waiting to see what happens,” a trader added.
There are now just 903,700 tonnes of aluminium on-warrant in LME-listed warehouses, significantly lower than 2012 when the figure was over 5 million tonnes.
But the stock level is still higher than the 2018 low of 605,750 tonnes, which was the lowest since 2007.


Alice Mason

January 23, 2019

12:02 GMT